As reported by journalists from Báo Người Lao Động, most joint-stock commercial banks have disclosed information about their shareholders owning 1% or more of the chartered capital according to the Law on Credit Institutions (amended), which took effect on July 1st.
The list disclosed by the banks so far includes state-owned commercial banks such as Vietcombank, VietinBank, and BIDV. Previously, a series of other banks also revealed major shareholders owning over 1% of the bank’s chartered capital, including VPBank, LPBank, HDBank, OCB, MSB, VIB, and Eximbank.
Following the above regulation, the State Bank is finalizing a draft circular regulating the case of commercial banks having shareholders, shareholders, and related parties owning shares exceeding the prescribed ratio – according to Article 55 of the Law on Credit Institutions (amended and supplemented in 2017) – and building and implementing a roadmap to ensure compliance with the provisions of the Law on Credit Institutions 2024.
According to the State Bank, the Law on Credit Institutions 2024 has made changes to the ratio of share ownership by a shareholder, a shareholder, and related parties; changes in the determination of related parties and indirect share ownership. Therefore, the issuance of the draft circular is necessary to address difficulties and problems that have arisen in practice.
According to the Law on Credit Institutions 2024, shareholders and related parties are allowed to hold 15% of the chartered capital instead of 20% as stipulated in the previous law.
A notable point in the draft circular is that shareholders, shareholders, and related parties at commercial banks who own shares exceeding the prescribed ratio are not allowed to increase the number of shares they hold in the bank in any form until they comply with the limit on share ownership regulations, except in the case of receiving bonus shares or dividends in shares.
“From the effective date of this Circular, credit institutions shall not extend credit or new credit (in case credit has been extended) to shareholders, shareholders in a group of related shareholders who own shares exceeding the limit, or related parties of such shareholders.
Shareholders, groups of related shareholders who own shares exceeding the prescribed ratio shall not receive cash dividends (if any) for the number of shares held in excess of the limit until they comply with the limit on share ownership regulations” – the draft circular states.
According to the Law on Credit Institutions 2024, shareholders and related parties are allowed to hold 15% of the chartered capital instead of 20% as in the previous law. If this group already owned shares according to the previous regulation before July 1st, they can still maintain their ownership but are not allowed to increase it, except in the case of receiving dividends in shares.
According to the definition in Clause 24, Article 4 of the Law on Credit Institutions 2024, for individuals, related parties include spouses; biological parents, adoptive parents; biological children, adopted children, daughters-in-law, sons-in-law; brothers and sisters of the same parents; grandparents; and grandchildren.
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